A federal agency that oversees the real estate industry has initiated a “comprehensive legal and policy review” of appraisal standards and appraiser qualifications nationwide.
The agency, The Appraisal Subcommittee (ASC), is working with The Council on Licensure, Enforcement and Regulation (CLEAR), a private association that promotes regulatory excellence.
CLEAR has selected a consortium of organizations to perform a review of:
- The Uniform Standards of Professional Appraisal Practice (USPAP) and the Real Property Appraiser Qualification Criteria (criteria), as established by the Appraisal Foundation’s Appraisal Standards Board and the Appraiser Qualifications Board, respectively, and
- The 15-Hour National USPAP and seven-Hour National USPAP Update Courses, which are required to attain and maintain licensure as an appraiser.
ASC said the federal requirements are being reviewed to determine whether they ensure and promote fairness, equity, objectivity, and diversity, in both appraisals and in the training and credentialing of appraisers.
With funding from ASC, CLEAR will review USPAP and the criteria against fair housing, fair lending, and civil rights laws, the agency said.
Consortium members include:
- The National Fair Housing Alliance, a civil rights organization dedicated to eliminating housing and lending discrimination and ensuring equal opportunities for all people;
- Steve Dane, an expert on fair housing and civil rights law; and
- Better Mortgage Corp., which is providing experience with multiple appraisers in a team led by Jillian White, head of collateral.
The review also will look at the process for training and retaining new appraisers and consider barriers to entry that disproportionately affect minorities and/or women. There will also be an evaluation of the process used to promote changes to USPAP and the criteria.
Consortium members were selected after a competitive process that resulted in multiple viable proposals, the agency said..
“ASC and CLEAR are very pleased with the caliber of these proposals and qualifications of the selectees,” ASC Executive Director Jim Park said. “This is an important step to determine if USPAP and/or the real property appraiser qualification criteria have had a disparate impact on people of color and women entering the appraisal profession, as well as (on) consumers who are directly impacted by appraisals.”
ASC did not say how long the review would take or whether there is a deadline for the consortium to submit recommendations.
Established under Title XI of the Financial Institutions, Reform, Recovery, and Enforcement Act of 1989 as amended by the Dodd-Frank Act of 2010, the ASC oversees state appraiser and AMC regulatory programs, provides grant funding, and protects federal financial and public policy interests in real estate appraisals utilized in federally related transactions.
CLEAR provides networking opportunities, publications, and research services for those involved with, or affected by, professional and occupational regulation.
